GST transactions with mainland Australia

GST and other indirect taxes don’t apply to Norfolk Island. However, Norfolk Island businesses may need to consider the GST implications when dealing with businesses on the Australian mainland.

Transactions on Norfolk Island

The Norfolk Island GST ceased on 1 July 2016 and the Australian GST doesn’t apply to Norfolk Island residents. Therefore Norfolk Island businesses shouldn’t charge GST, or advertise prices including GST, or issue invoices including GST for transactions on Norfolk Island.

Transactions with the Australian mainland

Norfolk Island businesses are only required to register for GST when they make supplies connected to the Australian mainland and have a GST turnover of over $75,000 in any 12-month period. GST turnover is your gross business income (before tax) that excludes sales on Norfolk Island.

When it comes to dealing with the Australian mainland, Norfolk Island businesses can:

register for GST and claim the GST credits on their business activity statement.

If the goods or services you purchase include GST, and you do not receive a refund of the GST, you can use the total price paid to work out your allowable tax deductions at the end of the income year.

GST-free sales

Australian mainland suppliers can sell goods to residents of Norfolk Island GST-free where they meet the export requirements.

This involves a bit of paperwork and it’s important to arrange this with the supplier upfront before you complete the transaction. You may need to refer the supplier to the information on our website about GST and sales to external territories if they are unfamiliar with the rules.

If you have questions about GST and dealing with Australian mainland suppliers, you can email us at GSTmail@ato.gov.au.

If I register for GST, will I need to charge GST to all my customers?

No. You will only need to charge GST on taxable goods and services you supply to the Australian mainland. Goods and services you supply to customers on Norfolk Island are not subject to GST.

Can I register for GST and claim GST charged on items for personal use?

No, the item must be for business use. If you purchase goods or services to use for both business and private use, you can only claim a GST credit for the part of the purchase relating to your intended business use.

What information will I be required to show on my BAS?

You must complete the GST section of the BAS if your business is registered for GST. Only sales that are connected with the Australian mainland should be included.

What are input-taxed supplies?

Input-taxed sales are sales of goods and services that don't include GST in the price. You can't claim GST credits for the GST included in the price of your 'inputs'.

The most common input-taxed sales are financial supplies (such as lending money or the provision of credit for a fee) and selling or renting out of residential premises.

When will I lodge my BAS to claim back my GST?

If you are voluntarily registering for GST you can chose to lodge your BAS monthly, quarterly or annually.

We will send you a BAS for the first tax period after you register, depending on how often you choose to lodge your BAS. Any GST credits you are able to claim (or pay) can be claimed in that BAS.

Goods and services tax (GST) and other indirect taxes don't apply to transactions on Norfolk Island. However, Norfolk Island businesses may need to consider the GST implications when dealing with businesses on the Australian mainland.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.